The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1887-12-09
PRESIDENTS MESSAGE.
Devoted to the Consideration Of
the Tariff and Surplus.
Urging the Necessity of a Revision of the
Revenue as the Only Remedy for a
Dangerous EyiI-AIethods Suggest
ed by the Executive.
FULL TEXT OF THE MESSAGE.

day:
To THE CONGRESS OF THE UNITED STATES
You are confronted at the threshold OF your
| legislative duties With condition OF the Ma
tional finances which imperatively demands i'm
| mediate and careful consideration.
| The amount OF money annually exacted
| through the operation Of present laws from the
Industries and necessities Of the people. largely
exceeds the sum necessary to meet the expenses
Of the Government
When we consider that the theory of our in
| situations guarantees to every citizen thu full
enjoyment of all the fruits of his Industry and
enterprise, with only such deduction as may
| be his share toward The careful and economical
| maintenance Of the Government VIII CHI pro-
tects HIM. IL is plain that the exaotion of more
| than this is indefensble extorton, and culpa-
Die oetr val OF American fairness and justice.
bear the burden OF National taxation ike
| other wrongs, multiples brood Of evil conse-
| Quences The pubic treasury, which should
! only exist rs a conduit conveying the people s
tribute to It's legitimate objects of expenditure,
| becomes hoarding-place Tor money needlessly
| Withdrawn from trade anu the peoples use,
thus Gripping our National energies, suspend
| ing cur countrys Development preventing in
vestment in productive enterprises, threaten
ing financial disturbance and inviting schemes
| of public plumber. This condition of our
more than once of late been submitted to the
peoples representatives in Congress, who
alone can apply remedy. And yet the situa-
ton still continues, with aggravated incidents,
| more than ever presagng financial commissions
| and W Widespread disaster.
It will not do to neglect this situation be-
cause It's dangers are not now palpably immi-
| nent and apparent. They exist none the less
certainly, and await the unforeseen unex-
pected occasion when suddenly they will be
| pleclpitated upon US.
On the 3Jth day of June, 1885, the excess Of
revenues over public expenditures, after COM
| plying with the annual requirement of the
Sinkng-fund act was s17o59, 1884: during the
| year ended June 30, 1865, such excess amounted
to Ss9, 403,54o.20, and during the year enoed
June 70, 1884, it reached The sum of $40. 567, 84a
The annual contributions to the sinking fund
| during the three years above specified, amount
ing IN the aggregate to &138, 0o8, 81, and &C.
| Quoted from the surplus as stated, were made
Iy calling in for THAI purpose outstanding 3 per
cent. bonds Of the Government During the six
| months prior to June 30, 1887, the surplus rev.
enue had grown SO large by repeated accumu-
latioGs, and 1t was feared the withdrawal OF this
| great sum of money needed by the people, would
so affect the business of the country, that tne sum
OF sf9 Ssh o OF such surplus was applied to the
| payment OF the principal and interest OF the
| 81 per cent. bonds still outstanding, and VIII ch
were then payable at the option OF the Govern
ment. the precarous condition OF financial
affairs among the people still needing relief,
Immediately after the 30th day OF June, 1857,
| the remainder Of the 3 per cent bonds then
outstanding, amounting, with principal and in
terest, to the sum Of Sl9,o77 500, were called in
and applied to the sinking fund contribution
for the current fiscal year. Notwithstanding
| these operations OF the Treasury Depart
ment, representations of distress in
| business circles not only continued
but increased, and absolute peril seemed at
| hand. In these circumstances the contribution
to the sinking fund for the current fiscal year
was at once completed by the expenditure of
S216S4, $3.50 in the purchase Of Government
| bonds not yet due being and IA per cent inter-
est, the premium pad theron averaging about "A
per cent. for the former and per cent. fer the
latter. In addition to this the interest accruing
| during the current year upon the outstanding
bonded indebtedness of the Government was to
n tad nT,a n
| depositor es Of public money were permitted to
somewhat increase their deposits
While the expedenJs titus employed to re-
lease to the people the money lying idle in the
| treasury served to avert immediate danger, our
surI1us revenues have continued to accumulate,
the excess for the present year amounting on
the first day of December to S55,2 S,701. 10, and
estimated to reach the sum of via 0,000 on
the a9th OF June next, at which date 1t is eX-
peoted that tn S sum, added to prior accumula-
tons viii, swell the surplus in the Treasury to
| a140.0@0000.
There seems to be no assurance that with
such withdrawal from use of the people
circulating medium our business may not in
the near future be subjected to the same
from the same cause. And while the func-
tons Of our National Treasury should be
dition. would be reached, I believe,
by its entire disconnection with pri-
vate business interests, yet when, by perver-
sion of its purposes, it idly holds money use
O.
there seems to be reason for the claim that
some legitimate means should be devised by
the Government to restore in an emergency.
without waste or extravaganza, such money to
its place among the people.
LII such an emergency arises there now exists
no clear and undoubted executive power OF re-
lief. Heretofore the redemption OF 3 per cent.
bonds, which were payable at the option Of the
| Government, has afforded means for the dis
bursement OF the excess Of our revenues; but
these bonds have all been retired, and there are
no bonds outstanding the payment Of which we
have the right to insist upon. The contribu-
ton to the sinking fund which furnishes the &C.
caslon for expenditure in the purchase OF bonds
has been already made for the current year. SO
there is no outlet In that direction.
In the present state of legislation the only
pretense Of any existing executive power to re-
store at this time any part of our surplus rev.
enues to the people by its expenditure, cons SITS
IN the supposition that the Secretary OF the
treasury may enter the market and purchase
the bonds of the Government not yet due, at @
rate of premium to be agreed upon.
The only provision of law from which such q
power could be derived is found in an appropri-
alton bill passed number OF years ago. and it
Is subject to the suspicion that it was intended
as temporary and limited in its application, in
stead OF comforting continuing discretion and
authority. No condition ought to exist which
would justify the grant of power to a single
official, upon his judgment of its necessity, to
withhold from or release to the business
OF the people, in an unusual manner, money
held in the Treasury, and thus affect, at his
will, the financial situation of the country; and
if 1T is deemed wise to lodge in the Secretary of
| the Treasury the authority in the present iunct-
ure to purchase bonds, it should be plainly
vested and provided, as far as possible, with
such checks and limitations as will define this
| officials right and discretion and at the same
time relieve him from undue responsibility.
In considering the question of purchasing
bonds as a means of restoring to circulation
the surplus money accommodating in the Treas
ury it should be borne in mind that premiums
must OF course be paid upon such purchase,
that there may be large part of these bonds
held as investments which can not be pur-
chased at any price, and that complications
among holders who are willing to sell may I'M
reasonably enhance the cost Of such bonds to
the Government
1t has been suggested that the present bond
ed debt might be refunded at a less rate of in
terest, and the difference between the old and
new securities paid in cash, thus finding use
for the surplus in the Treasury The success
of this plan, it is apparent, must depend upon
the volition of the holders of the present bonds
and it is not entirely certain that the induce
rent which must be offered them would re-
suit in mora financial benefit to the Govern
ment than the purchase of bonds, while the lat
ter proposition would reduce the principal of the
debt py actual payment. instead of extending it..
The proposition to deposit the money held by
the Government in banss throughout the coun-
try for use by the people is, it seems to me,
exceedingly objectionable in rrincple as es-
tablishing too close relationship between the
operat IONS of the Government treasury and
the business of the country, and too extensive
q co-ming1ng Of their money, thus fostering an
public funds. If this scheme should be adopt
ed it should only be done as a temporary
| expedient to meet an urgent necessity. Legis-
| lative and executive effort should generally be
| in the opposite direction, and should have ten
| dency to divorce. as much and as fast as can
| safely be done, the Treasury Department from
| pr waite enterprise.
OF course it is not expected that unnecessary
and extravagant appropriations will be made
for the purpose of avoiding the accumulation
OF an excess of revenue. Such expenditure,
| beside the decentralization of all just conceD-
tons of public dirty which II entails, stimulates
| q habit Of reckless improYdence not in the
| least consistent with the mission OF our people
| or the high and beneficent purposes of our
Government.
have deemed Tiny duty to thus bring to the
| knowledge OF my countrymen, as well as to the
| attention of their representatives charged with
the responsibility of legislative relief, the
| gravity OF our financial situation. The failure
! of the Congress heretofore to provide against
| the dangers which it was quite evident the
very nature of the difficulty must necessarily
| produce, caused condition of financial dis
tress and apprehension Snce your last adj
Journment which taxed to the utmost ali the
authority and expedlents within executive con-
troll; and these appear now TO be exhausted
| II disaster results from the continued inaction
ofCongress, the responsibility must rest where